Home loans rebound in July
13th Aug 2012
House purchase loans in the UK rebounded in July, buoyed by increased activity from wealthier buyers, the latest figures suggest.
Research published by e.surv chartered surveyors in its new Mortgage Monitor show that home loans rose to 49,561 in July from 44,192 in June, and on an annual basis were just one per cent lower than in July 2011.
The July mortgage market was dominated by equity-rich buyers, as two-thirds of all house purchase loans in July were to borrowers with a deposit of 25 per cent or more.
Overall, there were 4,708 new mortgages granted to borrowers with deposits of less than 15 per cent, representing less than one in ten of all loans across the month.
According to the statistics, house purchase loans for property worth over £500,000 rose 15 per cent, while loans for purchases over £750,000 increased by 17 per cent.
Richard Sexton, business development director of e.surv, explained that it is important not to get carried away with the figures, as the situation could be better for those taking their first step onto the housing ladder.
"It doesn't hide the two-tier nature of the mortgage market, with equity-rich borrowers dominating activity while many first-time buyers are locked out by banks lack of appetite for high loan-to-value lending," he added.
Posted by Staff Writer: Robin Stenson
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